You’ve done your research. You’ve picked one share you think it going to be a good long-term investment. All you have to do now is get on the phone to your stockbroker and buy it. But before you can phone, you need to know whether you’re going to give a market order or a limit order. So what’s the difference between a market order and a limit order? Read on to find out…

Giving your stockbroker a limit order is different to a market order. A limit order is lower than the current market price of a share.

The limit price is the most you’re willing to pay for a share. And your broker can only buy the shares if he can get them at that price or below that price.

By placing a limit order, you hope the price of the share is going to fall back so you can buy it at a cheaper price. You’re bullish on the overall prospects of the share, but you hope it will pullback before going higher.

But by opting for this method of buying shares, there’s a chance the share price won’t come down to the price you’re willing to pay. And you won’t get the shares.

---------------------------------------------------------------Don't miss out on the
final MONSTER GROWTH opportunity of 2014